Answer
(d)
Work Step by Step
Cap-and-trade on carbon emissions and green taxes are both incentive-based approaches to control environmental degradation. In a cap-and-trade system, a maximum limit (cap) is set on the total amount of carbon emissions allowed, and companies are given permits for their emissions. If a company reduces its emissions below its permitted level, it can sell or trade the unused permits to other companies. Green taxes, on the other hand, impose taxes on activities that have negative environmental impacts, such as carbon emissions or pollution, which provides an economic incentive for companies to reduce their harmful activities.
The answer is (d).
